People need to save between 10% and 17% of their income if they plan to retire at 65 but are putting away only 6-8% of their income, according to a new study by the Stanford Center on Longevity. That’s only half of what they should be saving.
What percent of your household income are you saving? It’s important to be brutally honest with yourself because a shortfall of the magnitude most Americans will experience means more than just not being able to live the retirement lifestyle you dreamed of. It may mean…
- Having to choose between putting food on the table and the medical care you need
- Not being able to afford to pay for heating and air conditioning
- Having to rely on the charity of your children
- Foregoing travel and even life’s little luxuries
I doubt you worked hard all your life so that you can scrimp and sacrifice just to get by in retirement.
Fully 60% of U.S. households are at risk of not having enough money to make ends meet in retirement – even if they cut back to spending just 75% of pre-retirement levels – according to a 2018 study from the Center for Retirement Research.